HRMG 3400 LTD Lab Activity_ Vocabulary: Qualifying period, aka elimination period, aka waiting period Own Occupation – Typically 24 months Any Occupation – after 24 months All Source Maximum Income Waiver of Premium Benefit Schedule - % of pre-disability earnings Benefit Volume - $ Rate: $/ $100 Calculation of premiums: Premiums are calculated based on a rate per $100 of benefit. Benefits are set out in a Benefit Schedule Example: Premium rate: $1.20 per $100 of benefit volume. (Use annual salary to calculate annual premium, or monthly salary to calculate monthly premium Benefit schedule: 70% of earnings, to a maximum benefit of $5000/ month Your employee earns: $40,000 What is the "benefit volume"? What is the monthly premium?
HRMG 3400 LTD Lab Activity_ Vocabulary: Qualifying period, aka elimination period, aka waiting period Own Occupation – Typically 24 months Any Occupation – after 24 months All Source Maximum Income Waiver of Premium Benefit Schedule - % of pre-disability earnings Benefit Volume - $ Rate: $/ $100 Calculation of premiums: Premiums are calculated based on a rate per $100 of benefit. Benefits are set out in a Benefit Schedule Example: Premium rate: $1.20 per $100 of benefit volume. (Use annual salary to calculate annual premium, or monthly salary to calculate monthly premium Benefit schedule: 70% of earnings, to a maximum benefit of $5000/ month Your employee earns: $40,000 What is the "benefit volume"? What is the monthly premium?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:HRMG 3400 LTD Lab Activity
Vocabulary:
Qualifying period, aka elimination period, aka waiting period
Own Occupation – Typically 24 months
Any Occupation – after 24 months
All Source Maximum Income
Waiver of Premium
Benefit Schedule - % of pre-disability earnings
Benefit Volume - $
Rate: $/ $100
Calculation of premiums:
Premiums are calculated based on a rate per $100 of benefit.
Benefits are set out in a Benefit Schedule
Example:
Premium rate: $1.20 per $100 of benefit volume. (Use annual salary to
calculate annual premium, or monthly salary to calculate monthly premium.)
Benefit schedule: 70% of earnings, to a maximum benefit of S5000/ month.
Your employee earns:
$40,000
What is the "benefit volume"?
What is the monthly premium?
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